Day Care FSA limits increased; enrollment and changes allowed in May
With the recent passage of the American Rescue Plan Act of 2021 (ARPA), you are now able to contribute up to $10,500—pre-tax—into your 2021 Day Care Flexible Spending Account (FSA).
For this year only, if you are currently enrolled, you can contribute up to $10,500 to your Day Care FSA, or $5,250 if married and filing separately. (Normally, per year, you can contribute up to $5,000 per household or $2,500 if married, filling separately.) This means you can save up to an additional $1,650 at tax time.
In addition, during May 2021, new enrollments in the Day Care FSA are allowed without a qualifying life event.
To increase your current Day Care FSA election or to newly enroll, use the FSA Change Form. New enrollments must be received by the Benefits team by May 31, 2021.
If you need help finding day care during the pandemic, your Day Care FSA offers Kinside, a free service that can help you find day cares and preschools nearby that are open and have availability. Day Care FSA participants receive 10% off day care services.
Reminder: The Consolidated Appropriations Act, 2021, a COVID-19 relief bill, allows any unused funds from 2021 FSAs to be rolled over and available for use next year.